Chapters 4-6

Which is not a crucial factor that affects and determines the proper functioning and financial success of a corporation?

• A. Effective financial management and budgeting

• 2. B. Understanding market competition and industry trends

• 2. C. Customer satisfaction and loyalty

• 2. D. Employee morale and workplace environment

Which of the following is NOT considered a macro factor that influences a company's business environment within its country?

• A) Government regulation

• B) Political and legal elements

• C) Company-specific marketing strategies

• D) Infrastructure and financial markets

Government regulations cover various aspects that influence international trade, including ____________ and ____________ limitations, competition, antitrust laws, standards of service, subsidies, and percentage of local or foreign ownership.

The success or failure of a company can be heavily influenced by _______and ______ environment of country

True or False: Natural resources such as gold, forests, and farmland are the only factors that determine which businesses can succeed in a particular country, while the physical infrastructure of a country has little impact on the movement of goods and people.

• True

• False

What role do financial agents play in a strong economic system?

• They connect suppliers with buyers and price transactions

• They exclusively focus on insurance underwriting

• They operate only in international markets

• They do not influence the development of businesses

True or False: Main country risk factors that can adversely affect the financial performance of companies include prolonged GDP contraction, sudden liquidity contraction, and unfavorable changes in regulations or tariffs.

• True

• False

According to Chris Zook, we can say that if two business segments have the same _____, the same ____, and the same _______, they are one business.

According to what is, competitive advantage in an industry is dependent on five primary areas, Threat of new entrants, power of buyers, power of supplier, threat of substitute products, and competitors.

• BCG Matrix

• Porters Five Forces

• SWOT analysis

• McKinsey 7S Framework

A growth industry is one that has strong protentional for sale growth, in a new market but it has not yet achieved sales in every available market. What is the percentage would you like to see in a growth industry?

• Greater than 1%

• Greater than 3%

• Greater than 4%

• Greater than 5%